Brits are busy booking holidays in a desperate bid to escape the UK for some winter sun following a disappointing summer.
The findings come as Nationwide’s Spending Report – an analysis of more than 237 million debit card, credit card and Direct Debit transactions – shows that spend on holidays and airline travel in September increased by nine per cent year on year.
Separate research1 by Nationwide highlights that close to two thirds (63%) agree that the UK weather this summer wasn’t great and that they are keen to get abroad to find some sun. Summer 2024 struggled to start, with a wet July and an August that saw some counties in southern and north-east England receiving their monthly average rainfall in the first half of the month.
More than eight in ten people (82%) have already booked their next holiday or will do so very soon. The average spend per person is expected to be around £1,200, leaving a family of four facing a bill of almost £5,000.
Interestingly, the research also uncovered attitudes to booking holidays as the cost of living remains high. While 21 per cent say that they’ve not had to change the type of holiday they book, almost one in three (29%) now book fewer holidays and 22 per cent say they now book all-inclusive as it helps to manage the holiday budget. Almost one in five (19%) are booking holidays where they can pay it off monthly, while 24 per cent book using their credit card and the same percentage (24%) use savings.
Nationwide’s Spending Report2 shows almost £7.8 billion was spent overall in September. Spending overall was down 4 per cent compared to the previous year, while transactions were up 5 per cent.
Essential spending overview (full data by category in table below): the amount spent in September reached £4.4 billion – as transaction volumes (c.121m) increased four per cent versus last year. Housing costs account for the biggest rises, with renters seeing a 19 per cent year-on-year increase, while mortgage repayments increased 17 per cent. With the start of a new school year, spend on Childcare & Education rose 122% compared to August and 8% versus September 2023. Supermarket spend (c.£1.1bn) was the biggest single category for spend in September.
Non-essential spending overview (full data by category in table below): at £3.4 billion, overall non-essential spending was up nine per cent compared to September 2023 with transaction volumes up seven per cent. Alongside the year-on-year rise on holidays and air travel, spend on Leisure and Recreation increase 15 per cent and Gambling (9%) and Eating & Drinking Out (8%) also saw annual increases.
Mark Nalder, Nationwide’s Payments Strategy Director, said: “Despite rising essential costs, particularly mortgages and rent, people are still keen to go abroad to find some winter sun after a relatively mild UK summer. But with additional pressures such as the increased spend on childcare, alongside increase housing costs, parents especially are having to juggle budgets in order to pay for the things they need and the things they want.”
Britain’s biggest building society has a dedicated cost-of-living helpline3 (0800 030 40 66), with trained experts able to provide support in-branch or over the telephone (see Notes to Editor). Support can range from conducting financial health checks to forbearance options for those facing financial difficulties.
Nationwide’s FlexPlus current account is a market-leading4 packaged account with benefits including worldwide family travel insurance mobile phone insurance, UK and European breakdown cover and commission-free usage abroad for £13 per month (rising to £18 per month 1 December 2024).
